Health charge vetoed on a split vote

Saturday 01 October 2016

After five days of discussion, it was a dramatic final few minutes to the biggest political debate of the year so far. Ministers may have got most of their financial plans for the next three years agreed this week, but the controversial new health charge was a pill too bitter to swallow for the States.

Just after 19:00 tonight they voted on the MTFP: effectively Ministerial plans to avoid a £113million black hole in the Island's finances by 2019, including investment in health and education, along with £77million worth of cuts. Most of the plan went through - but the vote on the new health charge was tied 23 - 23, meaning it falls away.

As yet it is unclear where that leaves the Ministerial plans, as the health charge was supposed to be a 0.5% tax on Islanders' income in 2018 rising to 1% in 2019, to fund increased investment in the health service, mainly to cope with the costs of an ageing population. 

Voting down the health charge leaves a gap of £7,500,000 in 2018 and £15,000,000 in 2019 in the ministers' plans. 

Ministers will now have to fund that money from somewhere else. 

The rest of the MTFP was passed, apart from an amendment forcing ministers to means-test all parents looking for a subsidy for nursery places, including those at States-run nurseries, and one which increased funding for jerriais tuition.